Dayton Company is considering investing in an annuity contract that will return $45,000 annually at the end

Question:

Dayton Company is considering investing in an annuity contract that will return $45,000 annually at the end of each year for 15 years. What amount should Dayton Company pay for this investment if it earns a 5% return?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...